This has to be one of the largest taxpayer funded scams in history.


Despite ‘serious concerns,’ Dayton to allow health insurance rescue plan become law

By David Montgomery / St. Paul Pioneer Press Today at 11:25 a.m.


ST. PAUL — Minnesota Gov. Mark Dayton will allow a rescue plan for the state’s individual insurance market to become law despite having “serious concerns” about how Republican lawmakers wrote the bill.

The program, called “reinsurance,” will absorb up to $271 million per year in expensive medical claims over the next two years. Those costs would ordinarily have to be paid for by insurers and passed on to their customers in the form of higher premiums. Premiums in the individual market could be lower by 20 percent in 2018 than they would be without reinsurance, the state Department of Commerce estimated.
The $542 million bill will be paid for out of the state’s general fund and a special fund intended to provide health care to low-income Minnesotans.

But Dayton objects to how this plan is paid for, how it’s structured, and to Republicans’ rejection of his preferred fix. HMOs also refused his request for assurances that they would offer plans next year if reinsurance was passed.

“Having received no responses, I could not sign this legislation for that reason alone, in addition to my other concerns previously stated,” Dayton wrote in a letter Monday, April 3. “However, I agree with you, this bill’s authors, and those legislative leaders, who believe that this subsidy must be committed to the health insurance industry at this time, to try to induce their participation in Minnesota’s Individual Market in 2018 at the lowest possible rates.”

Torn between feeling the bill was necessary and feeling it was flawed, Dayton chose a middle ground between signing it and vetoed it: he took no action. Under the Minnesota Constitution, that means the bill becomes law without Dayton’s signature.

The “individual market” affected by this measure covers around 4 percent of Minnesotans who buy insurance directly, rather than getting it through an employer-sponsored plan or as part of a government program such as Medicare or Medical Assistance.

Leave a Reply